Commercial mortgages

Delinquency trends split in Q3, with securitized and agency loans showing more strain while banks and life companies saw small improvements amid uneven vacancy and rent conditions.

Federal Reserve bank supervisors are monitoring community and regional banks' commercial real estate portfolios amid concerns over "lower commercial property values," the agency said. 

Freddie Mac is offering a municipal bond option for investors in its ML multifamily securitization offerings starting with its December issuance.

The move comes amid intense regulatory scrutiny of the commercial real estate market that has sparked a tightening of rules for lenders and brokers.

Deer Park has launched its first mortgage fund targeting discounted office debt following a period of elevated interest rates that has hammered valuations.

The banking giant's sale of the non-agency, third-party portion of its commercial servicing business will boost the buyer's position in the securitized market.

Pacific Investment Management Co. expects more regional bank failures in the U.S. because of a "very high" concentration of troubled commercial real estate loans on their books. 

Property lenders have often been willing to work with borrowers since the pandemic upended commercial real estate. Increasingly, their patience is running out. 

The volume of loans coming due swelled 40% from an earlier estimate by the Mortgage Bankers Association of $659 billion, a surge attributed to loan extensions and other delays rather than new transactions.

The real estate investment trust lowered its dividend to 25 cents a share after the company realized a nearly $59 million loss on a Philadelphia office loan.

Reven Office REIT is seeking $100 million from a lead investor and $900 million through a "blind pool" initial public offering.

The reality of converting office properties to multifamily housing is not as simple as it might seem, said Lisa Pendergast.

More clarity around values and an urgent need to address looming debt maturities are expected to spark more deals, a report from Jones Lang LaSalle said.

The delinquency rate that Kroll Bond Rating Agency tracks improved last month but JER's recent Chapter 11 filing and 2024 forecasts suggest it's still under pressure.

The real estate investment trust — which counts the private equity firm C-III Capital Partners among its top shareholders — owes more than $100 million to creditors but has less than $50 million of assets, according to a Chapter 11 petition.

The certificates are backed by a single loan for 10 retail centers in nine states. AMC Theatres is the portfolio's largest tenant, representing 10.4% of the portfolio's base rent.

Money has been squeezed out of the market by central banks fighting to get an inflation surge under control. That's made borrowing more expensive for governments, corporates and consumers, and could keep denting spending well into next year.

The credit grader lowered Brookfield Property's score by two steps to BB from BBB-, the lowest level of investment grade, and the rating remains on negative outlook.

Income-producing loans secured by real estate are under pressure at banks, the government-sponsored enterprises, insurers, and in CMBS to varying degrees.

Stress tests suggest systemically important depositories could weather current risks. Meanwhile, single-family arrears remain low, but that business could be impacted.